Nestlé SA and Stada Arzneimittel AG are exploring preliminary bids for Merck KGaA's consumer health unit, Reuters reported, citing anonymous sources.
The German drugmaker started looking into strategic options for its consumer health business in September. The business is valued at about €4 billion.
The sources told the news outlet that Merck's financial adviser JPMorgan has invited bids for the business before Dec. 15.
Private equity firms Bain Capital and Cinven acquired a majority stake in Stada in August and are looking for options to build on Stada's business, Reuters reported.
Merck, Nestle, Stada, Cinven and Bain all declined to comment on Reuters' report.
According to the news outlet, Stada is also considering bids for the generic drug business being sold by Sanofi, while Nestle has been offered the consumer health business being sold by Pfizer Inc.
